Romance scams — also known as "pig butchering" scams — are the most financially devastating type of crypto scam. Victims in Australia lose an average of over $20,000. These scams are run by organised criminal networks, often based in Southeast Asia, and can take weeks or months to unfold.
How It Works
Step 1: The Approach
You receive a message on a dating app (Tinder, Bumble, Hinge), social media (Instagram, Facebook), or even a "wrong number" text on WhatsApp or SMS. The person is attractive, friendly, and unusually interested in you.
Step 2: Building Trust
Over days or weeks, they build a relationship. They share personal stories, photos, and daily updates. They may video call using pre-recorded or deepfake footage. They never ask for money at this stage — they're building trust.
Step 3: The Investment Opportunity
Eventually, they casually mention they've been making great returns trading crypto. They might show screenshots of profits. They suggest you try it too — "just a small amount to start."
Step 4: The Fake Platform
They direct you to a website or app that looks like a real trading platform. You deposit money (often via crypto) and it appears to grow. You can even make small withdrawals early on to build confidence. It's all fake — the platform is controlled by the scammers.
Step 5: The Drain
Once you've deposited a significant amount, you try to withdraw and are told you need to pay "taxes", "fees", or "insurance" first. These demands keep increasing. Eventually, the scammer and the platform disappear.
Real-World Examples
A Melbourne woman lost $180,000 after a man she met on Hinge introduced her to a "crypto trading platform" over three months.
A Sydney retiree was contacted by a "wrong number" on WhatsApp. After weeks of friendship, the person convinced him to invest $95,000 in a fake crypto exchange.
A Brisbane professional was shown a "live trading dashboard" where her $10,000 investment appeared to grow to $85,000. When she tried to withdraw, she was asked to pay $12,000 in "release fees."
Red Flags
Someone you've never met in person talks about crypto investing
They refuse or delay video calls, or the video quality seems "off"
They claim consistent, high returns with no risk
They direct you to a specific platform you've never heard of
The platform lets you make small withdrawals early, then blocks larger ones
You're asked to pay fees or taxes before you can withdraw your money
They discourage you from telling friends or family about the investment
They pressure you to invest more, saying the "opportunity" is limited
How to Protect Yourself
Never invest based on advice from someone you've only met online
Verify any platform on ASIC's Moneysmart before depositing
Be suspicious if you can't find the platform on the App Store or Google Play
Talk to a trusted friend or family member before making investment decisions
If it feels too good to be true, it is
Remember: The scammers behind these schemes are professionals. Being scammed is not your fault. If you suspect you're being targeted, stop communication immediately and contact Coinstash Support.